Drought makes milk costlier by Rs2

Nagpur: Milk prices have been hiked by Rs2, taking the cost of one litre toned cow milk packet to Rs44 to 46, depending on the brand. There had been no hike since two years but the dry spell in the state has led to dairy operators revising the rates, so producers can get a better price in tough times.
It is normal to increase the prices in summer, which is the lean season for dairy industry, as the output goes down at this time. The dairy cycle is divided into lean season, from April to September, and flush season from October to March. The production is higher from October to March as it is the breeding time for bovines and production goes down in summer till September. The fall in output was within manageable levels during last year’s lean season due to which no price hike was required. Even as the procurement price was increased, the hike was not passed on to the consumers.
In 2019, the lean season has been leaner. The output is lower by 20% as compared to previous years’s lean season. This is being attributed to the drought in the state, which has reduced the per head milk yield, said sources in the industry
Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells the Amul brand, too has seen a sizeable dip in procurement for its processing units in Maharashtra. RS Sodhi, managing director of GCMMF, said if the procurement in Gujarat has dipped by 5%, it has gone down by 15 to 20% in Maharashtra. This is much lower than last year’s lean season. Maharashtra has been affected by drought since over three years, which has ultimately hit the milk yield, he said.
“Green or even dry grass cannot be expected in drought due to which fodder rates have gone up by close to 20%. As it has made upkeep of cattle difficult, this has also impacted milk yield,” said Sodhi. Dairies have already gone for one round of increase in procurement price paid to the farmers. With the current hike in sale price, procurement price can easily be taken up to Rs30 a litre. After which the state government here may not even have to shell out a subsidy, he said, ruling out any chance of a further price hike.
Meanwhile, at Amul’s procurement centre at Umarkhed in Yavatmal district, the supply has come down to 13,000 litres a day. This is 40% less than last lean season. “The shortage of fodder is also reflected in shortage of other products made of farm waste. Our unit uses briquettes out of waste like husks and other farm produce. However, due to the drought there is a shortage of farm waste too,” said Shyam Ladha, CEO of Amul’s unit at Nagpur.
The Mother Dairy plant run by National Dairy Development Board (NDDB) said the procurement has gone down by 50,000 litres a day to 2 lakh litres. The official said it’s normal for the output to come down in lean season and often the rates are increased.
A source in Dinshaws said the next year is expected to be better, with a better lean season too.
IN A NUTSHELL
Procurement of Amul has dipped by 15-20% in Maharashtra
One litre toned milk is available at Rs44-46 a litre
Double toned milk is Rs37-38 a litre
Rates of full cream buffalo milk are now in range of Rs53-55 a litre